Snam issues second EUR650 million EU Taxonomy Transition Bond -November 20, 2023 at 01:30 pm EST
(Alliance News) – Snam Spa announced on Monday that it has completed the issuance of its second EUR650 million EU Taxonomy-Aligned Transition Bond, the proceeds of which will be used to finance projects that support the energy transition, specifically the so-called Eligible Projects defined in the Sustainable Finance Framework published in November 2021.
The bond matures on November 27, 2029. It has an annual coupon of 4.0 percent with a re-offer price of 99.026 percent.
“The positive dialogue in recent months with investors and the current favorable market conditions have contributed to the success of the transaction, which, together with the instrument’s sustainability features, have allowed it to record a peak demand of more than 4 times the supply. The issuance acts as an additional source of pre-funding to meet 2024 investments and allows us to further reduce the volatility of our cost of debt,” commented Snam CFO Luca Passa.
“The transaction is in line with Snam’s commitment to giving sustainable finance a key role in its strategy, which includes, among others, the goals of achieving carbon neutrality by 2040 and further developing its activities in the energy transition. With today’s issuance, Snam further consolidates its goal of obtaining 80 percent of its financing through sustainable finance instruments, having already achieved the target set for 2026 and doubled the percentage of sustainable finance in three years,” the company explained in a note.
On Monday, Snam closed in the green by 0.9 percent at EUR4.54 per share.
By Claudia Cavaliere, Alliance News reporter
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